In sport mode, it locks up the FWD when accelerating and unlocks when decelerating- all of which makes perfect sense if you're on a racetrack. It also explains why heat would build up with the wet clutches in the transfer case during a long drive in hilly terrain (I didn't assume offroad). I wouldn't take a long drive in any condition just in sport mode simply because it also keeps the torque converter locked and delays upshifts so as to employ engine braking. On any long trip, this would be terrible for gas mileage, especially when going downhill. I'm not a Ford apologist by any means, but it certainly appears to me that despite your having some "gremlins", in this case, everything worked exactly as it's supposed to.